Bush Tax Cuts May Expire January 1: Homeowners of $1 M+ Properties Beware

Bush Tax Cuts May Expire January 1: Homeowners of $1 M+ Properties Beware

Capital_gains_tax

Do you own a home valued over 1 million dollars? Beware! Congress may allow the Bush Tax Cuts to expire on January 1, 2013. What does this mean for homeowners of properties valued over $1,000,000? Capital Gains taxes may rise as high as 20% from the current 15%. CNBC reports that if these go into effect, wealthy home owners could owe millions of dollars more in taxes on their home sales. Because Bush Tax Cuts may expire January 1, Homeowners of $1 M+ Properties are contacting REALTORS across the country, hoping to get their home on the market and sold before January 1.

Source: “Wealthy Home Owners Brace for ‘Mansion Cliff,’” CNBC (July 13, 2012)

But don’t panic! Regardless of the rate rise, the $500,000 capital gains exclusion remains in effect. This means that, under the current federal Tax Code, any sales gain of $250,000 or less for single filers and $500,000 or less for married couples filing jointly will still be exempt from capital gains tax. So…is it time to rush right out and sell your $1,000,000+ property? Can you afford to take your time? The best way for you to make that decision is to call The Oetkens! We have our finger on the pulse of the North Idaho Real Estate Market, and we keep a close eye on the news, politics, and other factors that can have a major influence on the Coeur d’Alene Real Estate market. Let’s start by establishing the current market value of your property.

Call us today for a complimentary Comparative Market Analysis.

Randy or Christy Oetken

208-660-0506

Oetken@RealEstate-Browser.com

Once we establish the value of your property, then we can help you determine the wisest course of action based on your specific circumstances. We’re in the business of helping you Own The Lifestyle. We have proven strategies for optimizing your Real Estate Investment Portfolio, and we have the experience, education and expertise you can trust. Call us today! Call

Randy or Christy Oetken

of

Windermere Coeur d’Alene Realty

208-660-0506

Oetken@RealEstate-Browser.com

For more information on our local Real Estate Market, visit

www.RealEstate-Browser.com/MarketNews

Posted on August 1, 2012 at 12:13 pm
Randy and Christy Oetken | Category: Home Ownership, I.R.S., Luxury, Market Analysis, Market News, Market Value, Premier Property, Real Estate, Save Money, Sell, Sellers, Taxes

Selling Your Home? Ten Tax Tips from IRS.Gov

Ten Tax Tips for Individuals Selling Their Home

IRS Summertime Tax Tip 2011-15,  August 8, 2011

The Internal Revenue Service has some important information to share with individuals who have sold or are about to sell their home. If you have a gain from the sale of your main home, you may qualify to exclude all or part of that gain from your income. Here are ten tips from the IRS to keep in mind when selling your home.

  1. In general, you are eligible to exclude the gain from income if you have owned and used your home as your main home for two years out of the five years prior to the date of its sale.
  2. If you have a gain from the sale of your main home, you may be able to exclude up to $250,000 of the gain from your income ($500,000 on a joint return in most cases).
  3. You are not eligible for the exclusion if you excluded the gain from the sale of another home during the two-year period prior to the sale of your home.
  4. If you can exclude all of the gain, you do not need to report the sale on your tax return.
  5. If you have a gain that cannot be excluded, it is taxable. You must report it on Form 1040, Schedule D, Capital Gains and Losses.
  6. You cannot deduct a loss from the sale of your main home.
  7. Worksheets are included in Publication 523, Selling Your Home, to help you figure the adjusted basis of the home you sold, the gain (or loss) on the sale, and the gain that you can exclude.
  8. If you have more than one home, you can exclude a gain only from the sale of your main home. You must pay tax on the gain from selling any other home. If you have two homes and live in both of them, your main home is ordinarily the one you live in most of the time.
  9. If you received the first-time homebuyer credit and within 36 months of the date of purchase, the property is no longer used as your principal residence, you are required to repay the credit. Repayment of the full credit is due with the income tax return for the year the home ceased to be your principal residence, using Form 5405, First-Time Homebuyer Credit and Repayment of the Credit. The full amount of the credit is reflected as additional tax on that year’s tax return.
  10. When you move, be sure to update your address with the IRS and the U.S. Postal Service to ensure you receive refunds or correspondence from the IRS. Use Form 8822, Change of Address, to notify the IRS of your address change.

For more information about selling your home, see IRS Publication 523, Selling Your Home. This publication is available at www.irs.gov or by calling 800-TAX-FORM (800-829-3676).

Links:

  • Publication 523, Selling Your Home ( PDF)
  • Form 5405, First-Time Homebuyer Credit and Repayment of the Credit ( PDF)
  • Form 8822, Change of Address ( PDF)
Posted on August 30, 2011 at 11:43 am
Randy and Christy Oetken | Category: home, I.R.S., Idaho, Real Estate, Save Money, Sell, Sellers, Taxes | Tagged , , , , , , , , , , ,

GOOD NEWS! Pending Home Sales UP 49%

“The price of new homes is fixin’ to RISE
In other words, Beat the Crowd!”

Hello, Friends!

When was the last time you heard THAT???

Today, we thought we’d pass along this VERY GOOD NEWS to give your spirits a better-than-average lift.  Reading graphs like this is such a pleasure…

Pending Home Sales are UP 49% over last year!

Great news – statisically speaking. Market stats (as provided by the CDA Multiple Listing Service) shows that PENDING HOME SALES ARE UP 49% when comparing May and June of 2010 to May and June of June 2011. Right now a very hot segment of the market are those homes selling for less than $200k. If you are thinking of selling…there are plenty of investors in the market.

Call us for more info if you’re interested in Buying or Selling
We’d love to help you find the perfect property under (or over!) $200K

208-660-0506

Oetken@RealEstate-Browser.com

AND THERE’S MORE!

We thought you would like the article we posted a few weeks ago, originally posted in Fortune Magazine, by Shawn Tully, senior editor-at-large.

Real Estate: It’s Time to Buy Again

Forget stocks. Don’t bet on gold. After four years of plunging home prices, the most attractive asset class in America is housing.…(click on this link to read the entire article)

Enjoy!

Randy & Christy

Posted on July 21, 2011 at 2:48 pm
Randy and Christy Oetken | Category: Bank-Owned, Buyers, Coeur d'Alene, Foreclosures, graph, Home Ownership, Idaho, Interest, Investment Properties, Kootenai County, Market News, Market Value, Mortgage, Multiple Listing Service, New Construction, Our Listings, Price Reduction, Pricing, Real Estate, Rental, Save Money, Sell, Sellers, Short Sale, Taxes | Tagged , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , ,

Homeowners Exemption Information for 2011

2011 HOMEOWNERS EXEMPTION INFORMATION

Kootenai County Assessor’s Office
Administration Building
451 Government Way
Coeur d’Alene, ID

 WHAT IS THE HOMEOWNER’S EXEMPTION?
The Homeowners Exemption is an exemption provided by state law that saves the property owner money on their property taxes. This happens because the exemption deducts 1/2 of the assessed value of the buildings & the one acre home site, up to a maximum of

 $92,040 or 50%, whichever is less. 

This rate may be adjusted annually.

 WHO QUALIFIES?
A property owner who occupies the home as their primary residence and is an Idaho resident.

 HOW DO YOU QUALIFY?

  • A valid Idaho drivers license (if you drive)
  • Vehicle is licensed in Idaho (if you own a vehicle)
  • If the property is in a trust, bring the entire trust with you
  • Registered Idaho voter (if you vote)
  • If you file income tax; at the appropriate time the property owner
  • Would file a full year Idaho resident income tax return
  • You reside in Idaho for a majority of the year

 WHEN DO I FILE?

  • On new construction the owner must apply within thirty (30) days of purchase.
  • On existing homes the deadline for applying is April 15th of the year that you occupied the home.

 WHERE DO I FILE?

The Homeowners Exemption Applications are available, and must be filed in the Assessor’s Office. The Assessor’s Office is located at 451 Government Way on the main floor of the Administration building, next to the information desk.

FOR FURTHER ASSISTANCE ~

Call the Assessor’s Office at (208) 446-1513

E-mail bwilliams@kcgov.us

Revised

Thank you, Pioneer Title Company for this timely information!

Posted on February 9, 2011 at 1:48 pm
Randy and Christy Oetken | Category: Home Ownership, Idaho, Kootenai County, New Construction, Our Listings, Real Estate, Save Money, Taxes | Tagged , , , , , , , ,

Mortgage Interest Deduction: WE SUPPORT IT!

Mortgage Interest Deduction?  OF COURSE!

We’re with Lawrence Yun, of the National Association of Realtors:

It’s a common misperception that the mortgage interest deduction benefits primarily the wealthy, as argued in the Washington Post’s January 1 editorial, “Trim the Excessive Tax Subsidy for Real Estate.”

In fact, the MID actually benefits primarily middle- and lower income families. Sixty five percent of families who claim the MID earn less than $100,000 per year, and 91 percent who claim the benefit earn less than $200,000 per year. As a percentage of income, the biggest MID beneficiaries are younger middle-class families.

The MID helps many families become home owners by reducing the carrying costs of owning a home. The ability to deduct the interest paid on a mortgage can mean significant savings at tax time. For example, a family who bought a home last year with a $200,000, 30-year, fixed-rate mortgage, assuming an interest rate of 5 percent, could save nearly $3,500 in federal taxes when they file next year. That’s real money they can use to pay down other debts, save for their children’s college education, or put away for retirement.

It’s no wonder, then, that most Americans support the MID. In fact, in a recent NAR survey by Harris Interactive of 3,000 home owners and renters, nearly three-fourths of home owners and two-thirds of renters said the MID was extremely or very important to them.

Unlike the very rich, much of whose wealth is tied to the stock market, the wealth of most middle-class American families is connected to their home. Millions of these Americans bought their homes with the understanding that mortgage interest is tax-deductible, and many of them have steadily paid down their mortgages to build equity in their home. Eliminating or reducing the MID would destroy part of this hard-earned equity for all home owners, independent of their tax filing status.

Furthermore, we also need to be mindful that home owners already pay 80 percent to 90 percent of U.S. federal income tax, and this share could rise to 95 percent if the MID is eliminated. Proposals that would remove certain tax benefits in return for lower tax rates just may hold for one or two terms of Congress before the tax rates are changed again. Americans are not naïve; they understand the nature of Washington politics.

For people who don’t have hundreds of thousands of dollars in savings to buy a home outright, tax benefits like the MID help them begin building their futures through home ownership…

We’d like to know what YOU think!  Take our poll!

“Do You Support the Mortgage Interest Deduction?”

Comments are open, and we hope you’ll express your opinion!  We’d love to hear from you.

Posted on January 17, 2011 at 3:48 pm
Randy and Christy Oetken | Category: Home Ownership, I.R.S., Interest, Mortgage, Poll, Real Estate, Save Money, Taxes | Tagged , , , , , , , , , , , , , , , , ,

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